19.502-6
Setting aside a class of acquisitions for small business
FAR 19.502-6 allows agencies to proactively reserve groups of acquisitions for small businesses, but requires careful documentation, periodic review, and clear communication of scope and exceptions.
Overview
FAR 19.502-6 outlines the procedures and requirements for setting aside a class of acquisitions—groups of similar products or services—for exclusive participation by small business concerns. This allows agencies to proactively reserve certain types of acquisitions for small businesses, even if a specific acquisition is not currently planned, as long as future needs are foreseeable and meet the criteria in FAR 19.502-1, 19.502-2, or 19.502-3(a).
Key Rules
- Class Set-Aside Eligibility
- A class of acquisitions can be set aside for small businesses if individual acquisitions meet the small business set-aside criteria.
- Determination Process
- The set-aside determination can be made unilaterally or jointly and must be documented in writing.
- Written Determination Requirements
- The determination must specify covered products/services, clarify applicability, and note exceptions (e.g., automatic set-asides, non-severable requirements).
- Review and Modification
- Contracting officers must review each acquisition under the class set-aside for changes in requirements or market conditions and may withdraw or modify the set-aside if necessary, with written notice to the SBA PCR.
Responsibilities
- Contracting Officers: Must document class set-aside determinations, review each acquisition for changes, and notify SBA PCR if modifications are needed.
- Contractors: Should monitor for class set-asides relevant to their offerings and understand eligibility requirements.
- Agencies: Ensure oversight and compliance with set-aside procedures and documentation.
Practical Implications
- This section enables agencies to streamline small business participation by reserving entire classes of acquisitions, reducing administrative burden for recurring needs. Contractors should be aware of class set-asides in their industry and ensure they meet eligibility. Contracting officers must remain vigilant for changes that could affect fair market pricing or small business capability.